Economy

Treasury seeks to free Sh500m withheld drugs

drugs

The drugs for treating trachoma have been withheld since October last year. FILE PHOTO | NMG

The Health ministry and the Treasury have reached a deal to release money for payment of storage fees to an investor who has withheld drugs for curbing an infectious eye disease that causes blindness.

Health Principal Secretary Peter Tum said in statement that plans are on course to pay Trans Global Cargo Centre allowing release of the drug, Zithromax.

The drugs for treating trachoma have been withheld since October last year.

“Ministry of Health has received from the Treasury authorisation to pay for storage of the consignment, which is now in the final stage of execution,” said Dr Tum without giving details.

It is not clear whether Treasury has released fresh funds or agreed to reallocation of the Health budget for payment of the storage fees.

The Sh500 million worth of Zithromax was a donation from drugs giant Pfizer through the International Trachoma Initiative (ITI).